Lloyds, Bank of Scotland and TSB basic account ATM restrictions end
People who have a Cash Account with these banks can now use any Link or Visa cashpoint at home or abroad.
Lloyds, TSB and Bank of Scotland basic bank account customers can now access ATMs belonging to other banks and building societies.
The three banks have changed the rules that apply to the Lloyds, TSB and Bank of Scotland Cash Accounts from today (2nd July).
Previously, customers with those accounts were only able to withdraw cash from Bank of Scotland, Halifax, Lloyds Bank, Sainsbury’s Bank and TSB cash machines.
They can now access any ATMs that are part of the Link and Visa network, both at home and abroad, although charges will apply for overseas use.
The banks will be replacing Cash Account customers’ debit cards between now and September.
The lifting of this restriction means the Royal Bank of Scotland and NatWest are now the only remaining banks to stop basic account customers from using rivals’ ATMs. But they too are removing this barrier later this year.
Why did banks impose these restrictions?
The banks claimed that the charges imposed by rival banks for using their ATMs was behind the initial decision back in 2011 to restrict access.
However, widespread criticism and a desire to be seen to be treating all customers fairly seem to be behind the move to finally reverse the decision. There was also the potential prospect of having their hands forced by European Union legislation in the future.
Basic bank accounts getting slowly better
For a long time basic bank accounts have been the poor relation of their current account cousins, despite millions of people having one.
Banks generally do not promote them, preferring to focus their efforts on more profitable current accounts, particularly ones that charge a monthly fee.
However, the lifting of the ATM restrictions mean they are likely to be useful to even more people.
As basic bank accounts don’t offer overdraft facilities, they can be particularly helpful to people who need a ‘ringfenced’ account where they have to budget as they can’t go into the red.
They are also often the only option for people with a poor credit history or no credit history at all; in the latter case, for example, people who have just moved to the UK.
For more on basic accounts and what’s on offer, have a read of Where to find a basic bank account.
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There’s never been a better time to switch bank accounts
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